README: Replication Documentation

Project Title
Can Lending Hierarchies Balance Bias? The Role of Personal Environmental Values in Credit to Green Firms

Authors
• Di Bu: Macquarie University
• Matti Keloharju: Aalto University School of Business, CEPR, and IFN
• Yin Liao: Macquarie University
• Steven Ongena: University of Zurich, Swiss Finance Institute, KU Leuven, NTNU Business School, and CEPR

Date: December 22, 2025

1. Data Availability Statement

The original data used in this study were obtained from a state-owned commercial bank under a strict non-disclosure agreement (NDA). Due to the highly sensitive nature of these records (containing identifiable loan and borrower information), the raw data cannot be shared.

Pseudo Dataset: To facilitate the verification of the code’s functionality, we have provided a pseudo dataset (newdataset.xlsx). This dataset mimics the structure, variable names, and dimensions of the original data. Documentation on the generation of this pseudo data is provided in pseudodata_documentation.pdf.

2. Software Requirements

• Software: Stata version 19.5.

• Required Packages: The following user-written Stata packages are required. You can install them by running the following commands in Stata:
o ssc install asdoc 
o ssc install outreg2 
o ssc install winsor2

3. Description of Files

Program Files
• data_initializing.do: This script prepares the raw data for analysis. 
• code_jfqa.do: This is the main analysis script. It generates all tables presented in the manuscript.

Data File
• newdataset.xlsx: The pseudo dataset used to test the code.

Documentation file
• pseudodata_documentation.pdf: Detailed explanation of the process used to create the pseudo dataset.

4. Instructions for Replication

To replicate the analysis using the pseudo data:
1. Set Directory, step 1: Open data_initializing.do and update the paths to point to your local folder containing the files.
2. Set Directory, step 2: Open code_jfqa.do and update the paths to point to your local folder containing the data_initializing.do file. Please note that this part appears many times.
3. Run Analysis: Run code_jfqa.do. This script will call the processed data and output the results.

Note: Because the pseudo data is randomized, the coefficients generated will not match the paper's results, but the code should execute without error.
